Question 1

What is POLYX?

Accepted Answer

POLYX is the native utility token of the Polymesh blockchain. It is used to pay network fees, participate in staking, and express support in governance. It is a network utility asset and does not represent equity in the Polymesh company or ownership of company profits.

Question 2

Why is POLYX needed to execute transactions on Polymesh?

Accepted Answer

POLYX is the fee asset on Polymesh: when users submit transactions, they pay the corresponding cost in POLYX, through which the network allocates resources for transaction processing and on-chain operations. Fees do not depend only on whether a transfer is made; the amount of data included in a transaction and the complexity of the operations invoked both affect the cost, and some native functions may also be subject to protocol fees. Therefore, the originating address needs sufficient available POLYX to cover the fee for that operation; if the balance is insufficient, the transaction cannot be executed as intended. Paying fees results from using network resources and is not equivalent to purchasing company services or obtaining a governance outcome.

Question 3

What does staking POLYX do, and where do rewards come from?

Accepted Answer

The purpose of staking POLYX is to support the proof-of-stake security of the Polymesh network. Node operators run validator-related infrastructure, and POLYX holders can allocate staking support to operators through nomination and other methods; the network selects and incentivizes participants according to consensus rules. Rewards come from POLYX issued by the protocol as block rewards, rather than guaranteed fixed interest. Receiving or sharing rewards depends on the validator involved, its performance, and network rules; if an operator fails to perform as required, staked funds may face penalties. Staking changes a token's participation and availability status, so users should first understand the applicable operational rules and risks.

Question 4

How do POLYX holders participate in governance?

Accepted Answer

POLYX's governance use allows holders to express support for Polymesh improvement proposals and participate in on-chain governance signals. Governance matters may involve protocol upgrades or parameter adjustments; whether a proposal produces an actual change depends on deliberation and execution through the established process, rather than a single vote automatically changing the network. Therefore, holding POLYX does not mean one can unilaterally control the protocol. It provides a tool for participating in the corresponding governance mechanism; the matters that can be participated in, thresholds, and outcomes are subject to the governance rules in force at the time.

Question 5

Is POLYX supply fixed?

Accepted Answer

POLYX does not have a fixed maximum total supply. Polymesh mints new POLYX for proof-of-stake block rewards, so total supply can increase when reward issuance occurs. This mechanism has an annual minting cap: newly minted tokens for this purpose may total at most 140 million POLYX per year. This cap limits the amount that can be produced for rewards within one year; it does not cap total supply at a fixed number. Actual issuance also depends on network rules and the reward mechanism.

Question 6

How does the network-wide staking ratio affect POLYX rewards?

Accepted Answer

Polymesh's reward design takes the network-wide staking ratio into account: when the staking ratio is below the target level, the mechanism can increase relative rewards to encourage more tokens to participate in network security; when staking reaches around the target, rewards decline. This affects the design direction of reward incentives, rather than promising the same return to every participant. An individual's actual result remains affected by the operator they support, network participation conditions, applicable rules, and possible penalties.

Question 7

Is identity registration required to transfer or stake POLYX?

Accepted Answer

POLYX can be transferred between keys; basic POLYX transfers and ordinary staking operations do not require completed identity registration. In other words, the basic function of token transfers is not the same access step as the identity system used by Polymesh for regulated-asset activities. However, requirements may differ among roles. In particular, requirements applicable to participation as a node operator may differ from those for ordinary holders transferring or staking, so the rules for basic transfers cannot be extrapolated to mean that no additional requirements apply to all network roles.

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